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RWS has patently good year

Helped by foreign exchange translation, the intellectual property services provider had it best year ever.
Patent document
RWS is the world's leading provider of patent translations

Shares in RWS Holdings PLC (LON:RWS) shot to a 52-week high as the patent translation and filing specialist trumpeted “its best year ever”.

Revenues for the year to the end of September are expected to be at least £122mln, which represents a significant improvement on the previous year’s £95.2mln, thanks in part by 11 months of contribution from recently acquired Corporate Translations Inc.

Adjusted profit before tax is expected to be not less than £30.5mln, up from £22.7mln the year before.

Broker Shore Capital, which rates the shares a ‘buy’, reckons revenues for the year just ended will be £122.1mln, noting its forecast is above the market consensus. In the current financial year, helped by currency tailwinds, it sees the top line rising to £135mln.

Its profit forecast for the year just ended is also above consensus, at £31.3mln.

“These results meet our (above consensus) expectations for strong growth in the business, via both the CTi acquisition and organic growth,” Shore said.

Further acquisitions could be on the horizon, judging by the company’s commentary.

"Our strong cash generation and resultant financial position leave us well placed to continue to selectively review a healthy pipeline of potential acquisitions as well as continuing our progressive dividend policy," said Andrew Brode, chairman of RWS.

The shares rose 11.8% to 281.375p on the results, having reached a 52-week high of 290p earlier in the morning.

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RWS Holdings Timeline

Newswire
October 11 2016

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